Tesla posts second straight year of losses: Elon's $1 trillion AI robot empire now officially valued higher than its dying EV profits

Tesla has reported its second consecutive year of declining revenue and profits, complicating Elon Musk's efforts to transform the company into a leader in AI and robotics. In the quarter ending December 2025, Tesla earned $840 million in net income on $24.9 billion in revenue, a 3% decrease in revenue and a 61% decrease in profits compared to the same quarter in 2024. This decline is significant, given the global electric vehicle market's continued growth. Tesla's revenue and profits have been impacted, despite the company's pioneering role in the industry. The company's net income decreased from $2.3 billion in the fourth quarter of 2024 to $840 million in the same quarter of 2025. This decline may have implications for Musk's $1 trillion initiative to expand Tesla's focus into AI and robotics. The company's performance is being closely watched by investors and industry analysts, as the global EV market continues to evolve and expand.